Should I accept tenant requesting FACS help for bond

I'm currently looking for new tenant for single bdr and I self manage the property
A very keen mum with daughter, are interested. I've sent out some background info forms for them to fill out and in the meantime FACS housing sent me an email with an online form to fill out, which included a line saying
"XXX is seeking assistance from FACS Housing to pay their rental bond."

Another thing is, she is apparently married, and I spoke to the guy on the phone but he wasn't there for inspection nor planning to live there with them...
She says she does have a full time job (yet to verify that)

My gut feel is red flags and tell her no, esp as I'm self managing the property and have no experience with housing assistance or what do to if anything goes awry
At same time they might be a good tenant who would be happy with staying long term, as its hard to find a place. I also have soft spot for single mums, its tough

what would you do ?

 

Not really familiar with facs, but assume its the equivalent of our SA Housing bonds. We accept these all the time and wouldn't judge a tenant either way.

Didn't put payslips in the application?

Then maybe you're not quite ready yet to self manage?

 

Qualifying for government assistance to pay the bond does not make them bad tenants. There is absolutely no correlation to the two scenarios.

Bond claims are done through tribunal process in the same way whether it’s s cash bond or government bond so if things go wrong there is no difference in how the bond was provided.

In some cases bond disputes against government (housing trust in SA) are quicker and easier with less emotional drama involved.

 

I previously leased to housing commission, but it was leased to housing commission directly and I had no info or say in the tenant. Very costly and stressful way to learn not to allow someone in until you have the ability to check up on them individually and have the option to approve/reject them.

If you go down this route that you have explained, at least you know who it is and have a say in whether you lease to them, Make sure you do all of your background checks (tenant db check, employer check, past landlords check).

Also I would be blunt with her and ask her questions that you normally would not ask in a social situation because you are looking for possible problems later. I would ask her why she is not living with her husband. He might have a criminal record and they are leaving him out of it so you don't check up on him. They could be separated due to violence. I would probably want to check up on him also if that is possible. It is your money at stake, and after you lose a bunch of it, you will learn not to be shy to ask and instead try get as much information as you possibly can, even if the questions seem personal and uncomfortable for you to ask.

Also, don't forget that it may be hard to raise the rent with a tenant like this - especially when you have to talk to them personally when the market rent has gone up and you have to face a hardship story where you end up losing money by being emotionally involved and not having a property manager to execute your business decisions.

Make sure you know what you are getting in for and don't skip any of your due diligence.

 

A lot of people live week to week, many by choice even with an average income.
They put things like presents on lay buy, 36 month interest free cards (with high monthly fees), subscribe to those Christmas hamper things, subscribe to things like foxtel when they really cant afford it, pay a bit towards all of them each week/month.

If after buying food, fuel, pay bills etc they have 5 bucks left in their account/pocket, they go crazy if they don't find a way spend it.
They don't have savings therefore don't have the funds for emergencies when required, that's why they use services like these...

Not all bad people, just never been financially educated, likely their parents weren't either, which is "a" reason why I reckon it should be taught in school, rather than a second language, religion etc.

 

Thanks everyone, its beyond what I know and experience, and don' have time right now to learn.
I'm going to get a real estate agent to find the tenant, and pass this person on as a potential candidate, they can decide to screen or pass on.
It'll be a fairer assessment

 

WTF ? I smell a rat from the onset.

Not a good sign if they can't scrape a bond up.

Not a good sign if you got a soft spot for a tenant. A shifty tenant will pick up on that from a mile away.

Hmmm.. Not living with husband? Yeah right. Centrelink fraud? I bet you the husband will move in later. Oldest trick in the book.

Too risky for my liking.

 

Do a search on the property management section to see if anyone has recommended a decent PM for the area your property is in.
Better to start off with a recommended one rather than an unknown perhaps causing you and the tenant issues

 

Perhaps, could also be a recently separated couple being amicable for the sake of the kids.
My ex and I were like that at the start, helped each other out etc, then she met someone else and kicked me to the kerb

 

Yes anything is possible I suppose because I cannot be 100% sure of tenant's motive.

However being a Druitt lad my gut feeling is the tenant in question is suss.

 

Too many bad experiences with these for me. I would now decline unless there was something particularly amazing about their application

 

Mother and daughter moving into a 1 bedder would scream short term/temporary until she gets sorted with Housing Comm & a break lease (without penalty) will happen at soon at she gets alternative accommodation.

Not saying that they aren't deserving but pointing out risk to you.

Asking many of the questions raised by @Anthony Brew may breach the discrimination act eg. Marital status is irrelevant to an application.

 

Go with your gut feeling. If you feel uneasy DO NOT PROCEED!! Your gut will always be right. Move on and find a better tenant.

 

Nothing wrong with bond loans at all, I often recommend them to tenants if they qualify.

The married thing is an issue, you need to establish what’s going on, are they cheating centrelink (most likely, in which case he probably will be living there…!) or is there something else going on?

Verify her income in writing and with her employer. Don’t take her word for it- Just this week I got up to date payslips from a tenant only to find he got fired the day before he applied and didn’t have a cent of savings.

Your gut is very important, particularly in lower socioeconomic areas where tenants don’t always have great jobs and long history to give them a great paper application, you need to get a feeling for them. How responsive are they, is the application well filled out, are they polite and have a positive attitude, are they dressed respectfully, what is personal hygiene like, how do they keep their vehicle, do you get a sense that they are being deceptive, etc.

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